WALL STREET RESUMES RALLY FOLLOWING HOUSING REPORT – RSI PICKS T-BILLS, COVERED CALLS, HEALTHCARE, ASIA/PACIFIC AND EMERGING MARKET FUNDS
Posted on March 17, 2009 at 17:42 PM EDT
Today in the market, Tuesday, March 17, 2009 : Investors restarted Wall Street's rally Tuesday, buying financial and homebuilder stocks following a surprisingly upbeat report on home construction. Major market indicators jumped more than 2 percent, including the Dow Jones industrial average, which added 179 points. The technology-heavy Nasdaq surged more than 4 percent after sliding Monday. Stocks have risen five out of the past six sessions. The government's report that housing starts rose unexpectedly in February more than offset news that Alcoa Inc. is slashing its dividend. (headline & commentary courtesy of Yahoo Finance) ETF/CEF Low Volatility: BIL - SPDR Lehman 1-3 T-Bill ETF/CEF High Volatility : BEP - S&P 500 Covered Call Fund EMD - Western Asset Emerging Markets Income Fund Inc. EWM - Malaysia iShares FAX - Aberdeen Asia-Pacific Income Fund Inc. IHF - iShares Dow Jones U.S. Healthcare Providers ETF/CEF Discussion: With a huge rally in the markets today, it is puzzling at the mix of funds that are presented as potential buys by RSI. I am not about to second guess the RSI engine, but these picks are not the obvious winners today … they were the financials and real estate funds. It will be instructive to see who will fare better over the next six months. Will it be the REIT and financials or will it be the Asia/Pacific & emerging market funds? Time will tell who wins this battle Catch you tomorrow.
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